Get Ready for a Spring Bonus Bonanza! This year, financial professionals in the City are anticipating a particularly rewarding bonus season, with payouts expected to be significantly higher. But here's where it gets interesting: new regulations are allowing senior staff quicker access to a larger portion of their hard-earned cash.
This upcoming bonus distribution will be the first to incorporate recent regulatory shifts that have shortened the deferral periods for bank bonuses. These changes, enacted last October, represent a loosening of the rules that were put in place following the financial crisis. This adjustment has contributed to a palpable sense of optimism among professionals in the financial sector and beyond. But how might your own financial windfall compare?
For the fifth consecutive year, the Financial Times is conducting its bonus survey, inviting you to confidentially share your expectations for this year's bonuses and your plans for any awarded funds – whether you intend to invest, save, or spend. This anonymous survey takes a mere three minutes to complete, offering a quick way to contribute to a larger picture.
Jason Hollands, managing director at Evelyn Partners, noted that 2025 was a stellar year for most markets, despite global uncertainties. He highlighted the strong performance of sectors like big tech, banking, and commodities, which bodes exceptionally well for bonus payouts in those areas.
While UK tax professionals and wealth managers have seen a surge in demand for their services, especially after two challenging Budgets, fund managers have faced a tougher climate as passive investments continue to outperform. Hollands also pointed out that the weak UK IPO market has been a dampener on lucrative fees for investment bankers, lawyers, and consultants within the City's ecosystem.
And this is the part most people miss: Bankers who hold share awards deferred from previous bonuses are in an especially advantageous position this year. Adam Walkom, co-founder of Permanent Wealth Partners, explained that a significant factor is that "a lot of deferred stock is now looking much healthier given the run up in bank share prices." Indeed, shares in major banks like NatWest, Barclays, and HSBC have all seen impressive growth, climbing by 50% or more in the past twelve months.
"As senior level bonuses tend to be made up of a lot of stock, there’s a lot of profit to potentially take," Walkom added. "This is keeping financial advisers busy and will no doubt be good news for the pubs and bars of the City."
Furthermore, with restrictions on salary sacrifice for pension contributions set to be implemented following the November Budget, and changes aimed at limiting the tax advantages of venture capital trusts (VCTs), many individuals might be looking to maximize their pension contributions before these changes take effect. Given the ongoing squeeze on income tax thresholds, readers also have the opportunity to anonymously share if they are considering relocating overseas to improve their earning potential.
In last year's survey, a significant majority of FT readers reported receiving a larger bonus than the previous year. However, they also expressed concerns about having to work harder for these bonuses due to increased taxes and modified performance criteria.
The results of this year's anonymous poll will be compiled and shared in the coming weeks. Please ensure your responses are submitted by Sunday, February 8th.
Now, over to you: Do you agree that the new rules will lead to a significantly better bonus season for senior staff? And are you considering any major financial moves with your potential bonus? Let us know your thoughts in the comments below – we'd love to hear your perspective!
